Many people consider Okta (NASDAQ: OKTA) a vital cog in the security of data in cloud computing. Yet despite its importance in the cloud ecosystem, its stock has dropped 73% year to date, primarily due to the poor macroeconomy. However, some of this company's underperformance is its own doing. Okta made a bad decision early in 2022 that could come back to haunt it.

Here is one big risk that could disrupt the cybersecurity specialist's business.

Okta is the cloud's first independent identity and access management (IAM) company. IAM technology ensures that people are who they say they are and authorizes them to perform specific actions. Since many security experts consider Okta's service essential for preventing bad actors from accessing, stealing, changing, or deleting data in the cloud, any loss of trust can potentially devastate this business.

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Source Fool.com